First steps?

honeybee_6

Hi.I am finally trying to face up to my debt situation.
Its the result of all the usual-living over my budget for years , over spending on credit cards, borrowing from Peter to pay Paul and not managing things well.
Being a single parent and self employed , my income fluctuates and has been reduced due to illness.But I am completely to blame.
I am now up to my credit limit and feel the first step is to try and reduce the amount I am paying out per month(especially in interest).
I have got a bit behind now on a couple of credit card payments and have worked out a budget sheet and offers of pro rata to around the 6 cards and one loan..
I will very soon post all the details , but the debt is around £26000.
I would very much prefer if possible to try and sort this out for myself without getting any professional help.

However I have a few questions(Which I will order to make them easier to answer).
1.How likely are c.c companies going to accept these offers and freeze interest?
2.Are they more likely to accept if I went through a proper debt management company(as in one of the voluntary ones)
3.If I want to try and claim back some the charges they have made would it be better to do this before I offer them reduced payments or could I do both?
4.IF a payment is due should I send the reduced amount with my request letter so that I dont get even more behind?
5.Once I have sent these letters will there be the chance that anyone will come knocking at the door(I am presuming that would only happen if I make no contact) as my elderly mother lives withus and she cannot know about these problems due to ill health.
6.Is this the best route to take?
I dont want to yet think of bankrupcy or an IVA and probably if I could would get a consolidation loan but know that wouldnt be sensible.

Although I have to accept that I have very little option in all this and I know that it would probably be impossible and wrong to get more credit I am extremely scared about having no emmergency fund.
Lat night we found my daughters guinea pig very unwell and we had to take her to the vet(Unfortunately as an emmegency) and she had to be put to sleep.
It was awful, but also brought to the realisation that I have no credit card to pay £100 bill.
Is there any card I could still get as an emmergency only card?
If so should I try and apply before I send these letters.?(I know it is defeating the object but this is very scary)!

I am now over 40, no home of my own and very in debt.
I do though have a beautiful daughter and a very caring mother and also lots of dreams not fullfilled,
Most involve buliding up a business , but by admitting these debts I cannot see how I can move forward.
We have lived quite comfortably and not struggled and now the struggle I guess begins.
Its hard to accept and I admire all you people that have.
Any advice will be greatfully appreciatted.!Many thanks.

the_cat

hi and welcome

well done for making the first step. although you are bound to be scared of facing it all, posting your SOA on here with all the details will give the experts here the best chance of advising you.
with careful budgeting it is possible to live perfectly comfortably, honest!
Granted impulse buys, posh holidays will be off the menu, but will be traded for peace of mind which makes for a much more comfortable state of mind

Good luck

hypno06

Hi there, I don't know a huge amount about debt management programmes, but there is a fantastic support thread on this board that will be able to give you all the help advice and support that you need. Someone will be along from that thread soon I am sure.

Even though you say you don't want any professional help, it doesn't do any harm at all to give one of the charitable companies, like CCCS or National Debtline a call to talk things through.

I am going it alone, just throwing every spare penny at my debt, but when making my decision to do so, I found that I needed to talk to these people so that I truly understood my options and the implications of each one. Don't be afraid to pick up the phone - they won't push you into doing anything, they will simply give you information that you will find invaluable.

If you can get together a statement of affairs, it may be helpful for you to see where things are going out, and going wrong, and if you want to post it on here, others can give you the benefit of their infinite wisdom! See southernscouser's sticky at the top of this board.

Good luck, you have made a big step in the right direction - now you just need to keep walking.

HardleyLisa

However I have a few questions(Which I will order to make them easier to answer).
1.How likely are c.c companies going to accept these offers and freeze interest? I was told by the CCCS that if your creditors can see you are serious about sorting out your debts they are very likeyly to accept./COLOR]
2.Are they more likely to accept if I went through a proper debt management company(as in one of the voluntary ones)I don't know whether they are more likely to accept but the CCCS seemed to think it helps by using a DMC (CCCS, PayPlan)
3.If I want to try and claim back some the charges they have made would it be better to do this before I offer them reduced payments or could I do both?
I personally wouldn't wait to claim back charges as this could take several months and during that time your debt is likely to increase. I too have charges and the CCCS advised me it is okay to claim back charges whilst on a DMP but if they refund the charges they will take it directly off your debt (i.e not send you a cheque) so you can't offer a proportion to all your creditors. I see it as long as your debt is going down it doesn't matter where it goes
4.IF a payment is due should I send the reduced amount with my request letter so that I dont get even more behind?You should send a token payment (i.e £5) with your request for reduced payments.
5.Once I have sent these letters will there be the chance that anyone will come knocking at the door(I am presuming that would only happen if I make no contact) as my elderly mother lives withus and she cannot know about these problems due to ill health.I'm not really sure about this one but all I can say is I haven't had anyone call at the house
6.Is this the best route to take?Everybody's situation is different but for me a DMP was definitely the best option. Perhaps you could try calling CCCS/Payplan for advice in the first instance

honeybee_6

I have now enclosed a SOA as seperate thread.
Hope thats ok

honeybee_6

Here is the SOA

Income per month (including wages ,tax credit, and maintenance).

-£1506

Outgoings

rent - £260.00
council tax -£70
water rates-£49
content insurance _£10
life insurance £5 (may cancel)
Electricity -£70
Housekeeping-£300
Travel-£80
Telephone/mobile £23

-£1257

Credit Card Balance owed monthly apr offer

Sainsburys £6444 £146 18.95% (pa) 59.12

MBNA £4132 £ 86 2.0751% (monthly) £37.91

Capital one £1072 £49 1.597 £9.83

MINT £ 398 £36 1.66 £3.65

MARBLES £3591 £71 18.9pa £32.94

EGG LOAN AND 2 £11505 £240(approx) £105.54
CARDS(worked out together)

Based on amount of £249.00 available for offers.However as I am a bit behind some figures have now changed as charges added!

Any advice gratefully received.
Still not sure how to deal with the charges being made.


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Today, 1:02 PM #2
crawley_girl
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chevalier

My comments are in blue

Income per month (including wages ,tax credit, and maintenance).

-£1506does your mum contribute anything? Could you do mystery shopping, sell things on ebay, amazon do car boots to get some short term cash? Are you getting all the benefits you are entitiled to? Is your mum?

Outgoings

rent - £260.00Is this your share of the rent or is this all of it?
council tax -£70is this your share of the council tax, does your mum pay anything towards this?
water rates-£49
content insurance _£10
life insurance £5 (may cancel)
Electricity -£70:eek: Is this the only means of heating? If it is you can get grants to insulate your property to get this down. I think if your mum applies it is free (as she is a pensioner). By the way did she get her winter fuel allowance, and did she pay you it?
Housekeeping-£300How many people is this for? 3 of you? If so then you could still cut this down ,by batch cooking, meal planning etc.
Travel-£80
Telephone/mobile £23

You have nothing on your budget for car costs? Also no birthdays, xmas, building insurance, packed lunches, school trips, prescription costs, tv licence, internet costs, sky/ntl? costs? These need to be added in so that you get a true picture of what your outgoings are, because by saving monthly for yearly costs, you don't panic when they come round and put them on a credit card.....:rolleyes:

-£1257

Credit Card Balance owed monthly apr offer

Sainsburys £6444 £146 18.95% (pa) 59.12

MBNA £4132 £ 86 2.0751% (monthly) £37.91

Capital one £1072 £49 1.597 £9.83

MINT £ 398 £36 1.66 £3.65

MARBLES £3591 £71 18.9pa £32.94

EGG LOAN AND 2 £11505 £240(approx) £105.54
CARDS(worked out together)

Based on amount of £249.00 available for offers.However as I am a bit behind some figures have now changed as charges added!

Any advice gratefully received.
Still not sure how to deal with the charges being made. claim the charges back!

I hope you are not offended about what I put ref your mum's money. But there are some costs that her pension is meant to cover, and I would imagine she would be horrified to find that you are in debt because you are 'shielding her' from it. I am not saying that she should contribute disproportionately but that there are costs that she should and I am sure would be happy to contribute to. So if she offers you some money. Swallow your pride and say thank you with a big smile!
best of luck
chev